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Copart Q2 Earnings Miss Expectations, Revenues Decline Y/Y
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Key Takeaways
CPRT reported Q2 EPS of 36 cents, missing estimates as revenues dipped 3.6% to $1.12B.
CPRT service revenues fell to $952.1M, while vehicle sales rose above estimates to $169.6M.
Copart's operating income dropped 8.8% and net income fell 9.5%, despite $5.1B cash on hand.
Copart, Inc. (CPRT - Free Report) reported second-quarter fiscal 2026 (ended Jan. 31, 2026) adjusted earnings per share of 36 cents, which missed the Zacks Consensus Estimate of 40 cents. The bottom line declined 10% year over year. The online auto auction leader generated revenues of $1.12 billion, which lagged the Zacks Consensus Estimate of $1.18 billion. The top line also decreased 3.6% from the year-ago reported figure.
Service Revenues totaled $952.1 million, down from $991.3 million recorded in the year-ago period. The figure also missed the Zacks Consensus Estimate of $994 million. Service revenues accounted for 84.9% of total revenues.
Vehicle sales totaled $169.6 million in the quarter, down from $172 million in the prior-year period. The figure beat the Zacks Consensus Estimate of $158 million.
While facility operations expenses declined 2.7% year over year to $427.5 million, the cost of vehicle sales rose 1.8% to $150.4 million. Facility depreciation and amortization totaled $48.5 million, down 0.9% year over year. Facility stock-based compensation increased 31% to $2.4 million.
Gross profit was down 6.2% year over year to $492.8 million. General and administrative expenses rose 3.2% from the prior-year quarter’s level to $89.4 million. Total operating expenses were down 0.6% to $733 million.
Operating income declined 8.8% to $388.7 million from $426.2 million recorded in the year-ago quarter. Net income also declined 9.5% year over year to $350 million.
Copart had cash, cash equivalents and restricted cash of $5.1 billion as of Jan. 31, 2026, compared with $2.78 billion as of July 31, 2025.
Net cash from operating activities and capex during the first six months of fiscal 2026 were $662.8 million and $177.7 million, respectively.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.6% and 39.5%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 1 cent and 4 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.
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Copart Q2 Earnings Miss Expectations, Revenues Decline Y/Y
Key Takeaways
Copart, Inc. (CPRT - Free Report) reported second-quarter fiscal 2026 (ended Jan. 31, 2026) adjusted earnings per share of 36 cents, which missed the Zacks Consensus Estimate of 40 cents. The bottom line declined 10% year over year. The online auto auction leader generated revenues of $1.12 billion, which lagged the Zacks Consensus Estimate of $1.18 billion. The top line also decreased 3.6% from the year-ago reported figure.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Key Tidbits of CPRT’s Q2 Results
Service Revenues totaled $952.1 million, down from $991.3 million recorded in the year-ago period. The figure also missed the Zacks Consensus Estimate of $994 million. Service revenues accounted for 84.9% of total revenues.
Vehicle sales totaled $169.6 million in the quarter, down from $172 million in the prior-year period. The figure beat the Zacks Consensus Estimate of $158 million.
While facility operations expenses declined 2.7% year over year to $427.5 million, the cost of vehicle sales rose 1.8% to $150.4 million. Facility depreciation and amortization totaled $48.5 million, down 0.9% year over year. Facility stock-based compensation increased 31% to $2.4 million.
Gross profit was down 6.2% year over year to $492.8 million. General and administrative expenses rose 3.2% from the prior-year quarter’s level to $89.4 million. Total operating expenses were down 0.6% to $733 million.
Operating income declined 8.8% to $388.7 million from $426.2 million recorded in the year-ago quarter. Net income also declined 9.5% year over year to $350 million.
Copart had cash, cash equivalents and restricted cash of $5.1 billion as of Jan. 31, 2026, compared with $2.78 billion as of July 31, 2025.
Net cash from operating activities and capex during the first six months of fiscal 2026 were $662.8 million and $177.7 million, respectively.
Copart’s Zacks Rank & Key Picks
CPRT carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Ford Motor (F - Free Report) , Modine Manufacturing (MOD - Free Report) and Strattec Security (STRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.6% and 39.5%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 1 cent and 4 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.